Indicative FSP

Development of a Cross Docking distribution network for the distribution of pharmaceuticals to the pharmacies of Macedonia and Thrace region

10 / 12 / 2005

The objective of this study was to examine the prospect of developing a Cross Docking Distribution Network for the delivery of pharmaceuticals to the pharmacies of Macedonia – Thrace region, excluding those of Thessaloniki. FAMAR’s basic objective is the reduction of the delivery time and therefore the improvement of its customer service level. A linear programming model was developed analyzing: a) the number of Cross Docking facilities needed, b) the location of each facility, c) the capacity of each facility, c) the required number of trucks, d) the flow of goods among nodes, e) the time required to serve each cluster, f) the cost per case for each cluster, and g) the utilization rate of each truck. The new Cross Docking Distribution Network proposed by the model will satisfy the total demand with the minimum possible cost, enabling FAMAR to further improve its customer service level.